Petrofac said Thursday it secured a ten-year agreement with state-owned energy firm Petroleum Development Oman (PDO) for the delivery of engineering, procurement and construction management (EPCM) support services for major oil and gas projects.
The agreement, which has an additional five-year option, builds upon a three-year programme of EPC support contract delivery Petrofac has undertaken on behalf of PDO, Petrofac said in a statement without disclosing the deal value.
Future projects undertaken through the FA will be supported by Petrofac’s Muscat office for technical delivery and to ensure sustainable in-country value is generated.
Craig Muir, group managing director, engineering and production Services at Petrofac said: “This is a landmark agreement between our two companies and marks a new level of collaboration between PDO and Petrofac. It builds upon a long-standing relationship which spans more than two decades and encompasses a significant number of projects undertaken in Oman on both a lump-sum and reimbursable basis.
“Our priority will be to deliver quality oil and gas facilities that are technically robust, with an absolute focus on safety and in-country value.”
Raoul Restucci, managing director at PDO said: “This long-term agreement with Petrofac reflects our continuing commitment to the safe and responsible development of hydrocarbons in the Sultanate and to drive maximum in-country value from our operations.
“PDO seeks a high level of performance and commitment from our supply chain and this agreement reaffirms our determination to work with key partners in our supply chain to deliver real value for Oman and our shareholders. It is our firm belief the value that we have already created working closely together can be sustained well into the future and we look forward to extending our partnering with Petrofac in this next phase of our relationship.”
Petrofac is currently contracted on two PDO projects for EPCM work. This includes the US$1.2 billion award in March 2014 for the Rabab Harweel Integrated Project (RHIP) and the $0.9 billion award in June 2015 for the Yibal Khuff project.
Roberto Bertocco, managing director, EPCM, said: “This is a major milestone in the recognition of Petrofac’s EPCM support service delivery capability. The agreement cements the effectiveness of our working relationship with PDO and paves the way for the direct transfer of knowledge, skills and lessons learned from RHIP and Yibal Khuff onto future PDO projects.”